US Equities Plummet Amid Rising Oil Prices and Treasury Buyback Uncertainty

US equities closed lower last week due to rising oil prices and weakness in semiconductors. The US Treasury's decision to double long-term bond buybacks led to increased liquidity, a decline in long-term yields, and an equity rally. However, yields have since risen as markets question the policy's sustainability.

China's retail sales rose 0.6% year-over-year in July, while industrial output slowed down. The UK labor market cooled, but inflation increased from 2.6% to 2.9%, driven mainly by higher energy costs. Euro-area inflation remained at 2.9% with core inflation at 2.5%

The upcoming Jackson Hole Economic Symposium will be closely watched for clues on the path of monetary policy. Markets no longer expect a Fed rate hike in September, given signs of easing inflation and a cooling labor market.